02.01.202609:07:51UTC+00France Manufacturing PMI Hits 3½-Year High

France's HCOB Manufacturing PMI experienced a rebound in December 2025, rising to 50.7 from 47.8 in the previous month. This marks a return to growth after a three-month period of contraction, and it is the most significant improvement observed since June 2022. Production levels stabilized considerably following the sharp decline in November, buoyed by the fastest surge in new export orders in nearly four years. This growth was particularly strong in regions like Eastern and Southern Europe, North America, and select areas of Africa. Despite this, domestic demand remained subdued, with overall new business declining at its slowest rate since May. Employment rates climbed, reflecting the most rapid increase in payrolls since August 2024. While purchasing activity and inventory levels were reduced to optimize warehouse management, the declines showed signs of easing. Input costs continued a moderate rise, and for the first time since August 2025, output prices saw an uptick. Looking forward to 2026, manufacturers expressed cautious optimism, driven by expectations of increased sales and the launch of new products. However, domestic political uncertainties have somewhat dampened their overall sentiment.